accounting help 445476

Aug 29, 2021 | Uncategorized

1.A fixed cost may include all of the following except:

Rent for the warehouse.
Annual salary of the CEO.
Depreciation.
Sales commission expense.

2.The contribution margin ratio may be expressed as:

A percentage of revenue.
A total dollar amount for the period.
A contribution margin per unit.
Total contribution margin amount.

3.Variable costs would include:

Rent expense.
Depreciation expense.
Sales commission expense.
Executive salaries expense.

4 In deciding whether or not to accept a special order, what is the opportunity cost of using machinery for which the firm has sufficient excess capacity to accept the order?

The historical cost of the machinery.
The undepreciated cost of the machinery.
The same machinery cost allocated to regular production orders.
Zero.

5 When constrained by a limiting resource, managers often seek to produce those products which have:

The highest selling prices.
The lowest average cost per unit.
The highest contribution margin per unit of limiting resource.
The highest contribution margin ratios.

6.Opportunity costs represent:

Cash expenditures for business opportunities.
Benefits foregone.
Costs avoided by making a particular decision.
Indirect costs typically classified as manufacturing overhead.